General Inquiries

LOC to Revenue Calculation

  • 1.  LOC to Revenue Calculation

    Posted 12-13-2018 17:55
    I was just curious what the membership here would view as a common LOC amount (total and avg. drawn) for a subcontractor with $14mm in revenue to have established with their bank. Thx!

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    Curious
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  • 2.  RE: LOC to Revenue Calculation

    Posted 12-14-2018 11:05
    Hi Brandon,

    We are about 1/2 your size and do mostly Program Management of construction projects (as opposed to at-risk construction) so our biggest regular expense is salaries. We carry between $200K and $250K on a LOC with a local bank - essentially enough to cover a couple of payroll periods in case we encounter some timing issues with AR collections.

    Sincerely,

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    Mark Hejtmanek
    Chief Financial Officer
    The CPI Group
    Greenwood Village CO
    (303) 504-9999
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  • 3.  RE: LOC to Revenue Calculation

    Posted 12-16-2018 22:08
    Hello Brandon, we are an electrical contractor with similar revenue and a $1.2M LOC total. We have $20K automatic sweeps to and from our checking account.

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    Brett Garber
    President
    Garber Electrical Contractors
    Englewood OH
    bgarber@garberelectric.com
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